Millennials most likely to be hit by new mortgage rules

Millennials most likely to be hit by new mortgage rules

With new mortgage rules just a week away it could be millennials and other first-time buyers who could be the biggest losers.

The British Columbia Real Estate’s chief economist Cameron Muir calculates that a family with $80,000 income will see their purchasing power cut by around $100,000 to $305,000 due to the rules.

“Housing demand will slow as millennials, other first-time and early move-up buyers are squeezed out of the market,” Muir has warned.

While younger Canadians and those trying to become homeowners may be hardest hit, Muir says that there could be wide-reaching impact for the housing market in BC later on, with a fresh wave of price increases due to pent-up demand from those locked-out of homeownership in the near term.